What is Multi-Level Marketing?
By selfemployedblog | May 9, 2006
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There was a time many, many years ago that I tried my hand at MLM’s (multi-level marketing). It is not for everyone but many people have achieved great success. Basically an MLM is:
In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service (as well as the sales achieved by those they bring into the business). Source: Wikipedia
MLM’s tend to get a bad rap because of the scam programs that exist such as pyramid schemes:
A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. Pyramid schemes have existed for at least a century. In addition, other methods of conducting business known as multi-level marketing (MLM) and as “matrix schemes” often closely resemble pyramid schemes (although unlike pyramid schemes, which are almost always frauds, MLM and matrix schemes are in many cases regarded — at least legally — as legitimate business methods). Source: Wikipedia
A legitimate MLM will be based around a product or products. The more you can sell, the more you can earn. You can also earn from the people you’ve recruited to sell under you. Success can be achieved if you believe in the products you are selling. Most people are not born sales people so if you use the actual products and believe in them yourself, selling the products will come naturally.
Many MLM’s offer excellent incentive programs as well. I’ve seen documentaries of MLM’s that reward top selling distributors new cars or exotic vacations. The great thing about an MLM is that you can start it part-time and with the use of the internet, you can reach wider audiences by establishing your own web site. Some MLM’s even provide you with your own branded web site.
If you’re interested in dabbling in MLM, there are a few questions to ponder before choosing a company to work with:
1. How long has the company been in business?
2. Are you interested in the products and would you actually use them?
3. Does the company provide any type of training and ongoing support?
4. How will you earn commission and how will you be paid?
Remember to be weary of the scams. They are not always easy to point out but some research and asking around should help protect you on your journey.
Topics: Business Ideas |
10:42 am on May 10th, 2006
Hi, nice blog and thx for the info.
I believe online MLMs are one of the most unexploited niches on the Internet. Online MLM works faster and has the ability to become “viral†much easier than regular MLM.
I tried to put some of my experiences and thoughts regarding MLMs and their online potential on my new website, Web2earn.com – learn how to make money online. I tried to cover the most profitable and reliable home based business opportunities and categorize them in 10 main groups. I would, however, be very interested to obtain more perspectives on MLM and networking. So, if you would like to share your opinion on any of the things I analyzed on Web2earn or if you have a suggestion regarding the site, I would be more than happy to hear it.
Regards,
Michael Rad
Web2earn.com